Health Insurance

COBRA: The Expensive Safety Net That Is Sometimes Worth It

COBRA lets you keep your employer health insurance after leaving a job — but you pay the full premium. Here is when it makes sense and when to choose an ACA plan instead.

🇺🇸 Patriot Plans Editorial Team·7 min read·June 10, 2026

When you leave a job, you lose your employer health insurance. COBRA allows you to continue that coverage for up to 18 months — but you pay the full premium, including the portion your employer was paying. That can be a shock. Here is how to decide if COBRA is worth it.

How COBRA Works

COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers with 20 or more employees to offer continuation coverage when employees lose coverage due to qualifying events (job loss, reduced hours, divorce, death of covered employee, etc.). You can keep the same coverage for up to 18 months (36 months in some situations).

What COBRA Costs

Under COBRA, you pay the full premium — both the employee and employer portions — plus a 2% administrative fee. The average employer pays about $7,000/year for individual coverage. Under COBRA, you pay the full $7,000 plus 2% = approximately $600/month. That is a significant increase from the typical employee contribution of $100-$200/month.

COBRA vs ACA Marketplace Plans

ACA marketplace plans are often less expensive than COBRA, especially if you qualify for subsidies. Losing job-based coverage is a qualifying life event that triggers a 60-day special enrollment period for ACA plans. Compare the total cost (premium + deductible + copays) of COBRA vs ACA plans before deciding.

When COBRA Makes Sense

COBRA makes sense when: you have met your deductible and have significant upcoming medical expenses, you are in the middle of treatment and want to keep your current doctors, you expect to get new employer coverage within a few months, or you have a pre-existing condition that makes ACA underwriting complicated.

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Frequently Asked Questions

How long do I have to elect COBRA?

You have 60 days from the date you lose coverage (or the date you receive the COBRA election notice, whichever is later) to elect COBRA. Coverage is retroactive to the date you lost coverage if you elect within the 60-day window.

Can I switch from COBRA to an ACA plan before the 18 months are up?

Yes. You can drop COBRA at any time. However, dropping COBRA voluntarily does not trigger a special enrollment period for ACA plans. You must wait for the Annual Enrollment Period unless you have another qualifying life event.

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